CE Pro June 2023 - 68

MULTIDWELLING UNIT (MDU)
BOSTON INTEGRATOR FINDS THE RIGHT MDU FORMULA
MICHAEL OH, president of TSP Smart Spaces in
Boston, is one integrator who has figured out
how to thrive in the MDU market.
" There is no better disposable income
than a billionaire who spends $3 million
to $5 million on a condo that is his or her
third or fourth crash pad in the city. Those
are clearly the types of customers that
custom integrators want, " he quips.
TSP Smart Spaces launched back in 1982 with
a central focus on commercial IT support. Later, the company
added residential to its portfolio and today it represents half
its overall revenue. With a strong footing in both the residential
and commercial markets, TSP Smart Spaces is well suited
to take on the MDU space, which in many cases requires it to
be run like a commercial application.
That focus started in 2016 when the company consulted on
a high-end luxury 70-unit condo complex called the Austurhöfn
in Reykjavik, Iceland. The average sales price per unit
was $1.5 million. Every unit got a base-level package paid for
by the developer of about $7,000 per unit.
" When talking to the individual buyer of a condo unit, you
need to have a value proposition about the luxury experience
of having the technology, but developers don't give a crap
about that; they only care about the cost and the return on
investment. Often, ROI and cost are difficult to optimize in
the integration world. An integrator is not just going to install
the lowest cost solution. So, often an integrator is immediately
swimming upstream on an MDU project, " he contends.
Oh says the biggest lever for developers is speed.
" Some might think differentiation is most important, in
terms of making a condo or apartment complex different from
the one next to it that has similar amenities. But ultimately,
the developer cares most about speed of sale. The smart
home technology's goal is to raise the emotional engagement
and excitement for the potential buyer so he or she will sign
on the dotted line sooner. That is what I have found to be the
Michael Oh, president of TSP Smart Spaces, says deploying
technology that will speed up the sale of a condo unit is
by far the most important role integrators can play in the
MDU market.
key lever for the developer. Everything else was flat, " he says.
To help sell the units quicker, TSP Smart Spaces creates lavish
32- to 52-page brochures for each property. The leave-behind
brochures are beautifully designed and go through all the
subsystems in a smart home, such as shade options, keypad
styles, and more. The company also builds microsites that
connect to the website for the facility, often with a Matterport
interactive tour. Condo buyers are offered an array of
upgrades, including Lutron motorized shades, invisible Amina
speakers, freestanding Devialet speakers, Lutron Palladiom
keypads, and additional LG TVs.
Outfitting the sales unit in an MDU is also key, according to
Oh. TSP loaded up the sales unit with technology, even if you
have to pay for it yourself, according to Oh.
In the end, it worked at the Austurhöfn project in Iceland.
The average upgrade sales price ranged from $30,000
to $48,000 with one of the penthouse units splurging on
$225,000 in tech upgrades.
" In the end people are willing to spend about 2% to 3%
more to upgrade their units, " says Oh. CE Pro
The Austurhöfn in Reykjavik, Iceland, is a high-end luxury 70-unit condo complex in which the average sales price per unit was
$1.5 million. TSP Smart Spaces put in a base technology package of about $7,000.
68 | CE Pro June 2023
cepro.com
http://www.cepro.com
CE Pro June 2023

Table of Contents for the Digital Edition of CE Pro June 2023
